2024 Q2 Form 10-K Financial Statement

#000032018724000044 Filed on July 25, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024
Revenue $12.61B $51.36B
YoY Change -1.71% 0.28%
Cost Of Revenue $6.972B $28.48B
YoY Change -3.57% -1.56%
Gross Profit $5.634B $22.89B
YoY Change 0.7% 2.67%
Gross Profit Margin 44.69% 44.56%
Selling, General & Admin $4.049B $16.20B
YoY Change -7.43% -1.1%
% of Gross Profit 71.87% 70.77%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $204.0M $796.0M
YoY Change -13.56% -7.33%
% of Gross Profit 3.62% 3.48%
Operating Expenses $4.049B $16.20B
YoY Change -7.43% -1.1%
Operating Profit $1.585B $6.690B
YoY Change 29.81% 13.1%
Interest Expense $53.00M $161.0M
YoY Change 89.29% 2583.33%
% of Operating Profit 3.34% 2.41%
Other Income/Expense, Net $127.0M $228.0M
YoY Change -4333.33% -18.57%
Pretax Income $1.726B $6.700B
YoY Change 38.52% 8.05%
Income Tax $226.0M $1.000B
% Of Pretax Income 13.09% 14.93%
Net Earnings $1.500B $5.700B
YoY Change 45.49% 12.43%
Net Earnings / Revenue 11.9% 11.1%
Basic Earnings Per Share $3.76
Diluted Earnings Per Share $0.99 $3.73
COMMON SHARES
Basic Shares Outstanding 1.518B shares
Diluted Shares Outstanding 1.530B shares

Balance Sheet

Concept 2024 Q2 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $11.58B $11.58B
YoY Change 8.5% 8.5%
Cash & Equivalents $9.860B $9.860B
Short-Term Investments $1.722B $1.722B
Other Short-Term Assets $1.854B $1.854B
YoY Change -4.53% -4.53%
Inventory $7.519B $7.519B
Prepaid Expenses
Receivables $4.427B $4.427B
Other Receivables $0.00 $0.00
Total Short-Term Assets $25.38B $25.38B
YoY Change 0.71% 0.71%
LONG-TERM ASSETS
Property, Plant & Equipment $7.718B $7.718B
YoY Change -3.57% -3.57%
Goodwill $240.0M
YoY Change -14.59%
Intangibles $259.0M
YoY Change -5.47%
Long-Term Investments
YoY Change
Other Assets $4.511B $4.511B
YoY Change 19.66% 19.66%
Total Long-Term Assets $12.73B $12.73B
YoY Change 3.24% 3.24%
TOTAL ASSETS
Total Short-Term Assets $25.38B $25.38B
Total Long-Term Assets $12.73B $12.73B
Total Assets $38.11B $38.11B
YoY Change 1.54% 1.54%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.851B $2.851B
YoY Change -0.38% -0.38%
Accrued Expenses $6.202B $6.202B
YoY Change 10.38% 10.38%
Deferred Revenue
YoY Change
Short-Term Debt $6.000M $6.000M
YoY Change 0.0% 0.0%
Long-Term Debt Due $1.000B $1.000B
YoY Change
Total Short-Term Liabilities $10.59B $10.59B
YoY Change 14.44% 14.44%
LONG-TERM LIABILITIES
Long-Term Debt $7.903B $7.903B
YoY Change -11.47% -11.47%
Other Long-Term Liabilities $2.566B $2.566B
YoY Change -7.9% -7.9%
Total Long-Term Liabilities $10.47B $10.47B
YoY Change -10.62% -10.62%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.59B $10.59B
Total Long-Term Liabilities $10.47B $10.47B
Total Liabilities $23.68B $23.68B
YoY Change 0.65% 0.65%
SHAREHOLDERS EQUITY
Retained Earnings $965.0M
YoY Change -28.94%
Common Stock $13.41B
YoY Change 8.03%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $14.43B $14.43B
YoY Change
Total Liabilities & Shareholders Equity $38.11B $38.11B
YoY Change 1.54% 1.54%

Cashflow Statement

Concept 2024 Q2 2024
OPERATING ACTIVITIES
Net Income $1.500B $5.700B
YoY Change 45.49% 12.43%
Depreciation, Depletion And Amortization $204.0M $796.0M
YoY Change -13.56% -7.33%
Cash From Operating Activities $2.619B $7.429B
YoY Change 16.25% 27.19%
INVESTING ACTIVITIES
Capital Expenditures $213.0M $812.0M
YoY Change -20.82% -16.2%
Acquisitions
YoY Change
Other Investing Activities -$77.00M $15.00M
YoY Change -111.06% -99.02%
Cash From Investing Activities -$290.0M $894.0M
YoY Change -167.92% 58.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.420B -$5.888B
YoY Change -34.89% -20.93%
NET CHANGE
Cash From Operating Activities 2.619B $7.429B
Cash From Investing Activities -290.0M $894.0M
Cash From Financing Activities -1.420B -$5.888B
Net Change In Cash 909.0M $2.419B
YoY Change 82.16% -332.15%
FREE CASH FLOW
Cash From Operating Activities $2.619B $7.429B
Capital Expenditures $213.0M $812.0M
Free Cash Flow $2.406B $6.617B
YoY Change 21.27% 35.82%

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CY2024 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
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<div style="margin-bottom:6pt;margin-top:3pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company. </span></div><div style="margin-bottom:6pt;margin-top:3pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.</span></div><div style="margin-bottom:6pt;margin-top:3pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases. NIKE entities primarily purchase product in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company ("NTC"), a wholly-owned sourcing hub that buys NIKE branded products from third-party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different functional currency result in a foreign currency </span></div><div style="margin-bottom:6pt;margin-top:3pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">exposure for the NTC. (2) Other NIKE entities purchase product directly from third-party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar.</span></div>The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs.The Company is exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps which are designated as fair value hedges of the related long-term debt. Changes in the fair values of the interest rate swaps are recorded in Long-term debt or Current portion of long-term debt. The Company has, in the past, hedged and may, in the future, hedge the risk of variability in foreign currency-denominated net investments in wholly-owned international operations. All changes in fair value of the derivatives designated as net investment hedges are reported in Accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those investments.
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The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position.
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LesseeOperatingLeaseLiabilityPaymentsDueYearFour
403000000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
362000000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
991000000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
3367000000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
324000000 usd
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
3043000000 usd
CY2024Q2 nke Lessee Operating Lease Liability Agreements Signed But Not Commenced Payments Due
LesseeOperatingLeaseLiabilityAgreementsSignedButNotCommencedPaymentsDue
614000000 usd
CY2024Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P6Y10M24D
CY2023Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P7Y6M
CY2024Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.029
CY2023Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.025
CY2024 us-gaap Operating Lease Payments
OperatingLeasePayments
613000000 usd
CY2023 us-gaap Operating Lease Payments
OperatingLeasePayments
575000000 usd
CY2022 us-gaap Operating Lease Payments
OperatingLeasePayments
589000000 usd
CY2024 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
458000000 usd
CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
602000000 usd
CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
537000000 usd
CY2024Q2 us-gaap Restructuring And Related Cost Expected Cost1
RestructuringAndRelatedCostExpectedCost1
450000000 usd
CY2024 us-gaap Restructuring Charges
RestructuringCharges
443000000 usd
CY2024Q2 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2024Q2 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false
CY2024 ecd Insider Trd Policies Proc Adopted Flag
InsiderTrdPoliciesProcAdoptedFlag
true
CY2024 dei Auditor Firm
AuditorFirmId
238

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